Shares of Mercury Systems Inc.
MRCY,
dropped more than 10% in the extended session Friday after the aerospace and defense company said it has named board member Bill Ballhaus as its interim president and CEO, effective Saturday, and that a search for a suitor has failed. Ballhaus succeeds Mark Aslett, who has resigned, also effective Saturday, Mercury said. The board has launched a “comprehensive” search to identify its next permanent CEO, the company said. “While the search for Mercury’s next CEO is underway, the board, the leadership team and I are acutely focused on accelerating the company’s revenue growth, strengthening profitability and driving greater cash generation as we continue to support our customers and benefit from industry tailwinds,” Ballhaus said in a statement. In addition, Mercury said it has identified a “highly qualified candidate” to be its next CFO and plans to announce the new executive in the coming weeks. Mercury, which had been evaluating “strategic alternatives” focusing on a potential sale, also said that ultimately none of the proposals it received “yield options for a sale that would reflect the intrinsic value of the company.” The board unanimously decided to end the sale process and “instead focus on all potential opportunities to create value, including through the enhanced execution of the company’s strategic plan under refreshed leadership,” the company said. Shares of Mercury ended the regular trading day down 4.2%.